Earnings release
Page 1
Earnings Release - 2Q21 ▶ Brasília , August 10th , 2021 - Equatorial Energia S.A. , holding acting on the Brazilian electrical sector , on the distribution , transmission , generation , commercialization and services segments ( B3 : EQTL3 ; USOTC : EQUEY ) announces today its results for the second quarter ( 2Q21 ) and first semester of 2021 ( 1S21 ) . Consolidated Adjusted EBITDA reached R $ 1,223 million on the quarter ( + 42.7 % vs 2Q20 ) , with a raise of the Net Adjusted Results of 10.9 % ( R $ 429 million ) . The Company advances its growth strategy with CEA's acquisition . Consolidated Adjusted EBITDA reached R $ 1,223 million in the quarter , a raise of 42.7 % , mainly impacted by the raise of the sales on DisCos , the raise of the Parcel B Tariff , and the low levels of PDA . The Billed Volume reached 5,921 GWh , with a consolidated raise of 10.7 % when compared to the same quarter of the last year . Piauí and Pará presented raises of 14.7 % and 13.2 % , respectively , and Maranhão and Alagoas , both grew 7.2 % . Total Losses dropped in most of the 4 DisCos when compared to the 1Q21 , in the states of Alagoas ( 22.5 % , -0.5p.p. ) and Piauí ( 20.6 % , - 0.7p.p. ) by the seventh and ninth consecutive quarter , respectively , there was also a reduction in Pará ( 30.1 % , -0.6p.p. ) and a raise in Maranhão ( 19.2 % , + 0.5p.p . ) , DisCo with the smallest level of losses in the group . In the 2Q21 , Equatorial's consolidated Investments reached R $ 473 million , a drop of 21.3 % when compared to the 2Q20 , result of the conclusion of the transmission projects . Consolidated Leverage in the 2021 reached 2.0x , measured by Net Debt / Adjusted EBITDA , benefit for the larger level of cash and cash equivalents in the amount of R $ 8.1 billion , due to the strong cash Generation of the period . The Annual Tariff Adjustment Index for Equatorial Pará , on August 06 , 2021 ( 3Q21 ) , with an average effect for customers of + 9.01 % . The Parcel B presented a raise of 34 % , reaching R $ 2.9 billion . In July 01 , ONS ( Operador Nacional do Sistema Elétrico ) issued the Final Release Term ( TLD ) for 100 % of the annual revenues ( RAP ) of the asset SPV 03 , in the value of R $ 116.5 million . With the entry of this SPV , Equatorial Transmissão has all assets operating . In July 02 , Equatorial Serviços S.A , acquired E - Nova Instalação e Manutenção Ltda , focused on offering technical solutions in energy efficiency and electricity generation from renewable sources , including through distributed generation . In June 28 , the Equatorial Energia Group won the auction for the acquisition of the shareholding control of CEA , distribution concessionary of the state of Amapá . The acquisition depends on the completion of conditions precedent and regulatory authorizations . Adjusted EBITDA ( Quarter ) EBITDA Margin ( % NOR ) Completed the acquisition process of CEEE - D , on July 8 , 2021 , with signature of the purchase and sale agreement , after observing the precedent conditions and regulatory approvals . Financial Highlights ( R $ MM ) 2Q20 Net Operating Revenues ( NOR ) Adjusted EBITDA ( Last 12 monts ) Adjusted Net Income Net Income Margin ( % NOR ) Net Income per Share ( R $ / share ) Investments Net Debt Net Debt / Adj EBITDA ( Last 12 months ) Cash / Short Term Debt Financial Highlights ( R $ MM ) EQTL Maranhão EQTL Pará EQTL Piauí EQTL Alagoas Transmissão ( Regulatory ) Operating Highlights Sold Energy ( GWh ) Number of Consumers ( ' 000 ) 3,482 857 24.6 % 4,730 387 11.1 % 0.38 601 10,933 2Q20 2Q20 2.3 2.2 203 219 42 56 84 5,349 7,709 2Q21 4,272 1,223 28.6 % 5,155 447 10.5 % 0.44 473 10,298 2Q21 2Q21 2.0 3.1 302 415 156 97 254 5,921 7,876 Var . 22.7 % 42.7 % 4.0 p.p. 9.0 % 15.4 % NOVO MERCADO BM & FBOVESPA -0.7 p.p. 15.4 % -21.3 % -5.8 % -0,3 x 0,9 x Var . 48.6 % 89.7 % 275.6 % 73.3 % 202.4 % Var . 10.7 % 2.2 % 1S20 7,689 1,926 25.1 % 4,730 762 9.9 % 0.75 1,167 10,933 2.3 2.2 2020 equatorial ENERGIA IBOVESPA 1S20 431 530 95 110 161 10,929 7,709 1S21 8,695 2,304 26.5 % 5,155 853 9.8 % 0.84 844 10,298 2.0 3.1 2021 1S21 636 817 287 206 468 11,725 7,876 Var . 13.1 % 19.6 % 1.4 p.p. 9.0 % 11.9 % -0.1 p.p. 11.9 % -27.7 % -5.8 % -0,3 x 0,9 x Var . 48 % 54 % 203 % 87 % 191 % Var . 7.3 % 2.2 % For comparison purposes , 2021 does not consider an adjustment of R $ 283 million , referring to gains and losses on the realization of the contract asset of the transmission companies , with a positive impact on the " Net Operating Revenue ( NOR ) " line and a negative impact on " Costs of Electric Energy " , with no impact in the semester .